The Impact of SEC Lawsuits on Banking Institutions
Following the recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against major crypto players Binance and Coinbase, banking institutions have grown cautious about engaging with these firms. Coinbase CEO Brian Armstrong has taken to Twitter, launching a poll to investigate whether Bank of America is closing accounts associated with transactions on the exchange.
- Coinbase CEO Brian Armstrong launched a poll on Twitter to investigate whether Bank of America is closing accounts associated with transactions on the exchange.
- Muneeb Ali, co-founder of blockchain firm Stacks, claimed that his personal bank account was closed after 15 years due to his use of the account for Bitcoin transactions with Coinbase.
- The poll has received over 8,500 responses so far, with approximately 9% of respondents indicating that their accounts were closed due to transactions involving Coinbase.
- Banks worldwide have become more uncertain about the crypto industry due to value fluctuations, digital asset failures, and stricter regulations.
- Despite the SEC’s lawsuit against Coinbase, the stock price of Coinbase (COIN) has surged by 65% in the past month, rallying from $50 to over $85.
Overall, the recent SEC lawsuits have created concerns among banking institutions, leading to a cautious approach when engaging with major crypto players like Binance and Coinbase. The Twitter poll launched by Coinbase CEO Brian Armstrong has garnered significant attention, with a notable percentage of respondents confirming the closure of their accounts due to transactions involving Coinbase. The uncertainty surrounding the crypto industry, including value fluctuations and regulatory measures, has contributed to banks worldwide becoming more wary of the sector. Despite these challenges, Coinbase’s stock price has experienced impressive growth in the past month, indicating continued investor confidence in the company.
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